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ABB Divests Thomas & Betts

ZURICH, Switzerland — ABB signed an agreement to divest the Thomas & Betts HVAC business for $260 million in an all-cash transaction to Nortek Inc., Providence, R.I. According to the company, the sale is expected to close in the second quarter of 2014, subject to regulatory clearance.

ABB said it is divesting this business because of limited synergies with its core portfolio. The company noted it will continue to supply its high efficiency electrical motors and drives as well as its low voltage products range to the HVAC industry.

The company reported that the acquisition of Thomas & Betts in 2012 advanced ABB’s strategy of expanding the reach of its Low Voltage Products division into key geographies, sectors, and products. By combining ABB’s low-voltage protection, control and measurement products with Thomas & Betts’ electrical components, ABB has created a broader low-voltage offering with significant market access.

“The divestment is in line with our strategy to continuously optimize our portfolio and to focus our efforts on driving profitable growth in our core automation and power businesses,” said ABB CEO, Ulrich Spiesshofer. “Overall, Thomas & Betts continues to provide great synergies with significant growth opportunities and our integration process is fully on track.”

In North America, the acquisition of Thomas & Betts doubled ABB’s addressable market to approximately $24 billion. Thomas & Betts’ North American network is more than 6,000 distributor locations and wholesalers.

“This sale allows us to focus on our electrical business and on the benefits from the synergies with ABB in North America and the rest of the world,” Thomas & Betts CEO Chuck Treadway said. “HVAC has delivered strong performance and its employees and customers will benefit from the focus and investment of Nortek, a specialist in this area. Acquiring this business will enable Nortek to extend its residential heating and cooling business into the adjacent segments of the commercial HVAC market.”

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